One risk that many small business owners don’t spend enough time considering is business interruption. Would your business be able to handle an interruption and still survive?
There are many types of interruptions that can occur in a business. Today, we will review what I consider to be the three primary types of interruptions to your business that you can prepare for. If you’re ready for all of them, then you can run your business with more confidence; knowing that an interruption will not force your business to shut down permanently.
Would you be able to keep your business going if your business became inaccessible to you or your clients? The best way to address this issue is by taking precautionary steps to make sure that employees who are essential to the day-to-day operations of your business can work from home in a pinch if needed.
Thanks to today’s technology, internet connectivity can be established securely through a Virtual Private Network, which will protect your network and information. In addition, you should consider making as much information available as possible through the cloud, which makes your information accessible from anywhere; in case your employees need access in a hurry when they are stuck outside the office.
It’s worth noting that this strategy is also very effective in increasing your productivity as a company.
Sometimes your cash flow can be interrupted by a temporary, but significant drop in revenue. This drop can put you at risk of being unable to pay a number of bills that may be essential to the day-to-day functioning of your company.
One way to protect yourself from financial interruption is to purchase insurance against it by buying a business interruption rider on your commercial insurance policy. That will enable you receive a cash payout, if your claim is accepted. Consult your insurance broker.
In addition, try to network as much as possible with possible sources of credit. This strategy can leave you ahead of the game if you need capital in a pinch.
This is one of the most dangerous types of interruption in modern times, as more and more of the essential information to running a business is stored electronically. If that is stolen (or destroyed in a storm) and it is not preserved on the cloud or through another backup option, the business could be in serious trouble. That’s why it is a good idea to purchase an automatic backup option from one of your connections in technology or security.
In addition to being able to recover your data if it is stolen, it is important to be able to protect your customers’ information in a time when hacking seems very common. Consult your IT professional.
These are just three examples of business interruptions. I am sure that you can think of more if you review the potential risks to your business. Be prepared!
Remember, running a business successfully does not need to be complicated. Keep it simple!
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Manny Skevofilax is a consultant and speaker that assists his clients with successfully navigating the challenges of growing their businesses profitably. Since 2003, Manny helps businesses to enhance their financial results by using his experience in strategic planning, financial statement analysis, operations, and team-building. His consulting firm, PORTAL CFO Consulting, Inc., has attracted clients from diverse industries in the United States and abroad.
Manny can be reached at 410-808-3441 or via email at firstname.lastname@example.org.